Fundraising from America - Part 2 "Managing the Fundraising" This part is designed for everyone involved with 501(c)(3) governance, management and fundraising, including board members, officers and development staff. This is also suitable for organisations wishing to learn the requirements and the benefits of a 501(c)(3) prior to obtaining a 501(c)(3) status. Content: - What are the responsibilities of Directors & Officers of a 501(c)(3)? - Banks, Brokerage and Credit Cards - Stationary, Receipts & Donor Forms - IRS Audit. Liability Insurance. - What is a Registered Agent ? - Board Meetings, Annual Meeting, Whistle Blowers, By laws. - Trademarking. - Anti-Money Laundering Strategy - Sanctions and Anti-Terrorist Guidelines, Conflict of Interest, Document Retention. - Programs & grant making. - Form 990. Public Support Test. - State of Incorporation, State Registration. - Events & Auctions - Saying Thank You Slides taken from November 19th, 2013 Webinar A recording of this webinar presentation is available. Please contact websupport@chapel-york.com for further information **Legal information, not legal advice**

1. Chapel & York Limited
FUNDRAISING FROM AMERICA WEBINAR SERIES
PART 2: Managing the Fundraising

2. Chapel & York Webinar:
Managing the Fundraising
[Recap] Opportunities
USA is a huge philanthropy opportunity, fantastic
tradition of philanthropy, highest percentage of givers
and highest levels of giving in the world. 2012: $316 bn
Americans inside & outside the USA expect to be asked
to donate to charity. Grant making Foundations expect
to be asked for money and the larger foundations fund
huge projects throughout the world.
Americans are amazing fundraisers, will form a committee
and put on an event and set very high targets for their
fundraising if they really believe in your organization.

3. Chapel & York Webinar:
Managing the Fundraising
[Recap]
If an individual taxpayer wishes to make a grant to a nonprofit set up outside the USA, AND GET A TAX
DEDUCTION, the donor can make a donation to an
accommodating Public Charity and suggest the recipient.
It can only be a suggestion. If the Public Charity doesn’t
have full discretion & control over the funds it becomes a
conduit, and no tax deduction.
The US non-profit must establish that the non-US charity
is a suitable grantee under US law.

4. Chapel & York Webinar:
Managing the Fundraising
[Recap] SO YOUR CHOICE IS……
If you want to attract donations from American taxpayers
for your organization you must either
(a) work with an existing US Public Charity that will accept
donations and consider a suggestion of a non-US
charitable recipient, or
(b) set up an accommodating US Public Charity to support
you.

5. Chapel & York Webinar:
Managing the Fundraising
[Recap] (1) WORK WITH AN EXISTING
PUBLIC CHARITY
E.G. American Fund for Charities www.americanfund.info
The American Fund retain a percentage of each donation to
cover its overheads.
Minimum retained $50. Up to $10,000 7.50%. Next $90,000
5.00%. Over $100,000 $2.5%. Maximum retained from any
donation generally $10,000. Evaluation $250. Annual Renewal
$150.
No management or governance obligations but no name
recognition, no individual listing online on GuideStar and no
individual listing by IRS etc.

6. Chapel & York Webinar:
Managing the Fundraising
[Recap] (2) SET UP A PUBLIC CHARITY
TO SUPPORT YOUR ORGANIZATION
You are setting up an entirely independent organization in
the USA. You can refer to it as a (brother or) sister
organization, but should avoid getting into the habit of
calling it “our ....”

7. Chapel & York Webinar:
Managing the Fundraising
[Recap] REQUIRED TO SET UP:
Name, Incorporate in a US State, identify Board of
Directors, appoint a Registered Agent.
Apply for tax exempt status (Form 1023).
Negotiate with IRS. May take several months. 501(c)(3)
status, when granted, is “good” for all 50 States plus DC.
Chapel & York can set up a Public Charity for you. The
current cost is £8,310 plus VAT.

8. Chapel & York Webinar:
Managing the Fundraising
What are the responsibilities of
Directors & Officers of a 501(c)(3)?
- Act in accordance with the bylaws
- Ensure board members approve activities undertaken by 501(c)(3)
- Annually elect officers who may also be directors
- Ensure that State & Federal Returns are prepared and filed

9. Chapel & York Webinar:
Managing the Fundraising
501(c)(3) FINANCIAL
ADMINISTRATION:
- Banks & Banking
- Credit Cards
- Brokerage Account for gifts of stock

10. Chapel & York Webinar:
Managing the Fundraising
Stationery, Receipts and
Donor Forms

11. Chapel & York Webinar:
Managing the Fundraising
Receipts for donations

12. Chapel & York Webinar:
Managing the Fundraising
IRS AUDIT
DIRECTORS’& OFFICERS’ LIABILITY
INSURANCE

13. Chapel & York Webinar:
Managing the Fundraising
WHAT IS A REGISTERED AGENT?
A person authorized by a US State to receive legal notices
on behalf of a corporation

14. Chapel & York Webinar:
Managing the Fundraising
ANNUAL MEETING
- Appointment of Directors, Officers
- By Laws
- Board Meetings, Minutes
-Whistle Blower

15. Chapel & York Webinar:
Managing the Fundraising
LICENCE AGREEMENTS,
REGISTERING NAME / LOGO
Safeguard your organization’s name by
trade marking it (in every State).

16. Chapel & York Webinar:
Managing the Fundraising
ANTI-MONEY LAUNDERING
STRATEGY
Don’t accept significant anonymous donations.
Retain the name & home address and other contact
details of every donor

17. Chapel & York Webinar:
Managing the Fundraising
SANCTIONS &
ANTI-TERRORIST GUIDELINES
Conflict of Interest
Document Retention

18. Chapel & York Webinar:
Managing the Fundraising
PROGRAMS & GRANT MAKING

19. Chapel & York Webinar:
Managing the Fundraising
Form 990:
990 Postcard income under $50,000;
990EZ receipts under $200,000 & assets less than $500,000;
990 receipts $500,000 or more

20. Chapel & York Webinar:
Managing the Fundraising
PUBLIC SUPPORT TEST
2% of total income over 5 years from individuals, companies, private foundations
public charities and state or federal government plus interest from investments is
calculated. If the total given by any individual, company or private foundation or
earned from interest is more than 2% the excess is disregarded. A computation is
then made which consists of a fraction, the numerator of which is all the donations
minus the disregarded excess, divided by the denominator which is all the donations
received. The remainder must be 33.3% or more for the organization to be a public
charity.
- Unusual Grants, 10% Facts & Circumstances.

21. Chapel & York Webinar:
Managing the Fundraising
STATE OF INCORPORATION

22. Chapel & York Webinar:
Managing the Fundraising
STATE REGISTRATION
Most States have some requirement for 501(c)(3)s to
register if they are planning to operate or to solicit
charitable gifts from people or organizations resident in or
located in the State. All States have different rules.

23. Chapel & York Webinar:
Managing the Fundraising
EVENTS
Sales Tax
US non-profits are exempt from sales tax in some
US States

24. Chapel & York Webinar:
Managing the Fundraising
AUCTIONS
Donors (successful bidders) may take a tax deduction on
the difference between the fair market value and what
they pay BUT they must know the fair market value before
they bid.

25. Chapel & York Webinar:
Managing the Fundraising
SAYING THANK YOU

26. Chapel & York Webinar:
Managing the Fundraising
Today’s webinar presenter was:
David Wickert: +44 1342 871915
david.wickert@chapel-york.com
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can be found at www.chapel-york.com
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